Hong Kong’s Securities and Futures Commission (SFC) and the United Kingdom’s Financial Conduct Authority (FCA) announced the signing a memorandum of understanding (MoU).
The SFC and the FCA will now embark on a collaboration, where both regulatory bodies will cooperate, consult, and share information in order to enhance the regulation and oversight of the legal operations of financial entities crossing the border in the UK and Hong Kong.
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The two financial watchdogs have joined forces as they believe that the cooperation will result in the bettering of one another’s abilities in their respective areas. The contract came into effect on July 7, 2017.
The regulatory authorities get zero rest as they crack down on untrustworthy, unlicensed brokerages on a daily basis in order to serve and protect local investors and traders from the rampant scams in the financial industry. They have their work cut out for them, and it it seems to never end. This week, the FCA issued a warning against GSI Markets for operating in the UK without a license. This binary options broker had been illegally soliciting and providing clients with financial services such as investment related consultation.
The SFC also had an eventful week, as it issued a Restriction Notice against brokerage IDS Forex HK Limited, a subsidiary of IDS Group, due to growing allegations of fraud. The role of the sole shareholder Kim Sunghun also came into play, who had received a twelve-year prison sentence for fraud and illegal fundraising in South Korea back in February this year.